(SACRAMENTO) – Today, the Assembly Jobs, Economic Development, and the Economy Committee approved Assembly Bill 162 by Assemblymember Sabrina Cervantes (D-Corona) and Assemblymember Sharon Quirk-Silva (D-Orange County) by a bipartisan vote of 7-0. AB 162 would make more small businesses eligible for the California Competes tax cut administered by the Governor’s Office of Business and Economic Development (GO-Biz). The tax cut is available to small businesses that wish to establish a business, or stay and grow an existing business, in California.
“Small and medium-sized businesses are critical to the economic foundation of our communities,” Assemblymember Cervantes said. “It is important that we as legislators do even more to cut taxes to support the small business community. AB 162 is a step in the right direction to help create jobs in my district and across California.”
AB 162 will change, for the purposes of the California Competes program, how a “small business” is defined. A business with fifty or fewer employees will be eligible to apply for the tax cut. This will make the California Competes program accessible to small businesses. Currently, yearly revenue is used to determine whether a small business is eligible.
“As the Chair of the Jobs Committee, I know how important the California Competes Tax Credit is to businesses,” Assemblymember Quirk-Silva said. “Small businesses are critical to the strength of local economies and communities. They give opportunities to people with entrepreneurial spirits and the will to work hard, and are the cornerstone of the American Dream.”
AB 162 will next be heard by the Assembly Appropriations Committee. More information about the bill can be found here.
Sabrina Cervantes represents the 60th District in the California State Assembly, which encompasses the communities of Corona, Eastvale, Jurupa Valley, Norco, and a portion of the City of Riverside.